Electricity Rates by State

The national average residential electricity rate is approximately $0.16 per kilowatt-hour (kWh). However, rates vary significantly by state, ranging from about $0.10/kWh in states like Utah and Idaho to over $0.35/kWh in Hawaii.

Electricity rates are rising due to aging grid infrastructure requiring costly upgrades, increasing fuel costs, stricter environmental regulations, extreme weather events damaging power systems, and growing demand from electric vehicles and data centers. Most states see annual increases of 2-5%.

Solar panels generate electricity from sunlight, reducing or eliminating the amount of power you need to buy from your utility. Most homeowners can offset 50-90% of their electricity usage with solar, and with net metering, you can earn credits for excess energy sent back to the grid. Once installed, solar provides essentially free electricity for 25+ years.

Hawaii, California, Massachusetts, Connecticut, Rhode Island, and New Hampshire consistently have the highest electricity rates in the U.S. These states also tend to have the best solar payback periods because the savings from replacing expensive grid electricity are greater.